An investor consortium led by US-based global investment group KKR and Altamar Capital Partners has announced the sale of the Spanish residential real estate platform Elix Vintage Residencial Socimi to German group Allianz in a deal valuing the platform at €250 mln.
Allianz is paying €140 mln for the platform in the group’s first PRS investment in Spain. The platform owns a portfolio consisting of 21 residential assets including 421 units, with 13 properties in Madrid and 8 properties in Barcelona. The majority of assets are private rented sector units, with several assets operated by co-living or short-term corporate operators. The portfolio is valued at around €250 mln including debt.
The portfolio, which equates to 41,000 m2 of residential space in total, will continue to be managed by Elix.
The Elix Vintage Residencial Socimi S.A. was launched in 2017 to invest in the Madrid and Barcelona residential real estate markets. KKR’s investment in Elix Vintage Residencial Socimi S.A. was made through its Real Estate Partners Europe I Fund.
Miguel Torres, head of Iberia, Allianz Real Estate, said: ‘The assets being acquired in Spain represent the finest PRS units in their micro-locations, redeveloped to very high standards with tenants, the community and the environment in mind. They underscore the importance of sustainability as a competitive differentiator and a means to attract tenants. Madrid and Barcelona are exhibiting strong fundamentals, and we see an opportunity to offer professionally refurbished, maintained and managed residential units, creating value for our tenants and investors. We look forward to continue to grow our exposure in the residential market in Spain.’
Alexander Gebauer, CEO West Europe, Allianz Real Estate, added: ‚This rare, off-market transaction in Spain underscores the sophistication of our local network and provides a strong platform for further market growth.’
Guillaume Cassou, partner, head of Real Estate Europe at KKR said: ‘We are delighted with the successful execution of the plan we set out in 2017 to invest capital, alongside Altamar Capital Partners and Elix, in high-quality residential refurbishment projects. Our investment thesis has been realised and we welcome Allianz as a new owner of the portfolio. The residential sector continues to be a priority for us, building on our track record of working with expert local managers and developers.’
Fernando Olaso, managing partner at Altamar Capital Partners commented: ‘The partnership between Altamar, KKR and Elix has worked extremely well. We have deployed a very hands-on value add strategy in building this great portfolio. Throughout, we have created significant value, factoring ESG principles into the refurbishment and significantly improving the energy efficiency across the portfolio. We are very pleased to see that Allianz, a reputable long-term investor, will be taking over from us and will continue to work on similar principles.’
The transaction is expected to close in July 2021.
